The NZDUSD opens at 0.7990 this morning.
The NZDUSD traded as low as 0.7950 overnight before bouncing. Milk prices rose 1.1% at last nights Fonterra auction.
The EURUSD hit a 4-month high after German investor & analyst sentiment rose for a second straight month in June.
The AUDUSD traded down yesterday after the Reserve Bank of Australia said they saw scope for the AUD to fall further as the country’s terms of trade declined. The NZDAUD rose to 0.8350.
Global financial markets have been on edge since the US Fed Chairman Ben Bernanke signalled that the central bank would look at scaling back its massive stimulus program.
The markets are hoping for more clarity from tomorrow morning’s Fed statement, particularly with reference to timing of when they will begin to reduce their USD$85 billion per month bond purchases..
Global equity markets were generally higher on the day. US, UK, & China indices rose circa 0.7%, while other market indices were little changed.
Gold prices fell more than 1% to USD$1367 an ounce overnight.
The NZD opens at 0.7990 USD, 0.8425 AUD, 0.5965 EUR, 0.5105GBP, & 76.20 JPY.
NZ Current Account balance will be released at 10:45am.
US FOMC interest decision and possible announcement of tapering of the Fed’s bond-buying program hit the tapes tomorrow morning.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here »
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